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TFSA (Tax-Free Savings Account) investors looking for core holdings to stash away in their retirement portfolios for the long haul have so many Canadian options to pick from, with the TSX Index now coming off from its recent highs. Undoubtedly, the TSX Index isn’t as exposed to the hot tech trends you’ll hear about from your favourite market commentators.
That said, you don’t need to be at the cutting edge of new tech (think generative AI, the metaverse, crypto, and all the sort) to do incredibly well in markets over time. What you do need is the ability to make your own investment decisions rather than taking a tip and not doing your own homework.
Indeed, it’s fun to get into hyped stocks, and while many people may have made huge gains, you’ll probably not be getting in at the same price. In fact, you may be one of the few folks getting in on a trade before it crumbles like a paper bag.
Tech volatility is back on Wall Street! Get ready, TFSA investors!
We saw quite a bit of tech selling last Thursday. And whether it’s the start of a more serious pullback to lower levels, TFSA investors should stay calm and continue picking up what they deem as bargains, regardless of what’s moving higher or lower.
Remember, just because the tech sector stands to drag the averages down does not mean you can’t make money with some of the neglected plays that are hiding under the radar of most long-term investors.
At the end of the day, if you want to sail into a serene retirement, investing should be boring, not exhilarating! If you’re in markets for a thrill, you may be taking on more risk than you think. That’s why the following boring stocks, I believe, are the best of names for the core of a long-term-oriented TFSA fund aimed at finding the right balance between growth and value.
Constellation Software
Constellation Software (TSX:CSU) is one of those growth stocks that’s actually quite boring. Indeed, it’s far less volatile than most other scorching tech stocks these days. Despite more than doubling in the past year, the stock hasn’t really had too many violent dips along the way.
In August 2023, shares of CSU may have endured a nasty correction, but it was short-lived and now looks like a tiny blip in the one-year chart. Indeed, buying the dips in Constellation Software has proven wise. And though the stock hasn’t corrected yet after hitting new all-time highs, I do see some consolidation as an opportunity to enter if you’re keen on the name.
Though I wouldn’t load up right here, given the stock’s still a bit expensive, I do think a starter position at $3,700-3,800 makes sense. If a correction hits, perhaps an opportunity to double down could be in the cards. Either way, CSU stock is a growth sensation that is perfect for stashing in a TFSA for a few decades.
The Foolish bottom line
Constellation stock shows you don’t need to risk your shirt for a shot at substantial gains. With a 0.8 beta, CSU stock looks to have somewhat less market risk than your average TSX stock. As a smart-beta-esque software juggernaut, do not sleep on the name as it flatlines into summer!
